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On 5 November 2020, the Government announced that the Coronavirus Job Retention Scheme will continue until 31 March 2021. As a result, the Job Support Scheme has now been postponed until further notice.

At the end of October, the Coronavirus Job Retention Scheme (more commonly referred to as furlough scheme) is due to come to an end. In its place, the Job Support Scheme (‘JSS’) is set to begin on 1 November 2020, and is proposed to be in place for six months.

CJRS: Job Retention Bonus

On 5 November 2020, the Government announced that the Coronavirus Job Retention Scheme will continue until 31 March 2021. As a result, the Job Retention Bonus will no longer be paid in February 2021. However, a further retention incentive may be arranged at a later date.

On 1 October 2020, the Treasury issued a Treasury Direction regarding the Job Retention Bonus. The Treasury Direction can be found here.  The Job Retention Bonus aims to “enhance and consolidate the purpose of the CJRS” by giving employers £1000 for each ‘qualifying employee’.

Following the Chancellor’s announcement of the Job Support Scheme earlier today, the government have published a short factsheet (found here) with some further details on how the scheme will operate.

The JSS is described as a scheme to protect “viable jobs” with employers able to claim government support for wages of employees who are working at least 33% of their normal hours.

On 31 July 2020, The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 came into force. These Regulations ensure that all furloughed employees receive redundancy payments at 100% of their normal pay, rather than at the reduced furlough rate.

Coronavirus Job Retention Scheme: 31 July: Job Retention Bonus

The Job Retention Bonus is aimed to protect jobs by giving employers the opportunity to claim a one-off payment of £1000 for all eligible employees.

On 31 July 2020, HMRC published further details with regard to the eligibility requirements and how employers can claim the bonus.

On 26 June 2020 HM Treasury issued an additional Treasury Direction highlighting the new rules which are to apply under the amended Coronavirus Job Retention Scheme (CJRS).

The new Direction confirms that the original CJRS will end on the 30 June with the amended CJRS, which allows for ‘flexible furlough’ arrangements, to apply from the 1 July. The scheme will close on 31 October 2020.

On Friday 12 June 2020, HMRC issued further guidance on the Coronavirus Job Retention Scheme (“CJRS”). This guidance outlines the details of the ‘flexible furlough scheme’ which can be utilised from the beginning of July. Under the flexible furlough scheme, employers can bring back furloughed employees on a part-time basis while still being able to receive funds under the CJRS in respect of the hours the employee is not working.  

Flexible Furlough Scheme

Covering the phasing in of employer contribution and flexible working

On Friday 29 May 2020, the Chancellor set out more details on how the Coronavirus Job Retention Scheme will operate over the summer and autumn following the prior announcement of an extension of the scheme to the end of October 2020.

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